If you have to pay income tax every year, you should be grateful, because that means that you make enough money each year to be in the tax slab. However, there are several people in our country, who don’t have a means to make a living, let alone pay taxes. These include people with disabilities and women from marginalised sections of society.
TRRAIN or Trust for Retailers and Retail Associates of India has been working with such people since 2011 and has been not only training them to become contributing members of society but also ensuring sustainable livelihood for their own selves too. So, when you make a donation to charitable trust like TRRAIN, you are not only helping them but also yourselves!
The what and why of donation under Section 80G
Tax laws in India have been designed to encourage philanthropy and community service and this happens by way of offering incentives to individuals and businesses.
Section 80G of the Income Tax Act, of 1961, is one such example – it enables taxpayers to claim deductions for donations made to specific charitable organizations. These deductions can range from 50% to 100% of the donated amount, depending on the type of organization and its registration status. The primary aim of this provision is to encourage individuals and entities to support philanthropic activities and create a culture of giving.
The key features of Section 80G deduction
Before you make a donation, you need to understand the main features of donation under Section 80G:
- Eligibility – While donations can be made via cash, cheque, or digital transfer, there is a maximum limit of INR 2,000 for cash donations to claim deductions. More importantly, donations must be made to institutions registered under Section 80G.
- Documentation – Donors must retain receipts issued by the charitable institution and the receipt should include details such as the donor’s name, donation amount, and the organization’s PAN (Permanent Account Number).
- Scope of deduction – Both individuals and corporations can claim deductions under this section. And non-resident Indians (NRIs) can also avail of these benefits for donations made to eligible institutions in India.
- Deduction rates – Donations qualify for either 50% or 100% deductions – some institutions are eligible for deductions without any qualifying limit, while others have specific ceilings.
Donation to charitable trust under Income Tax Act and TRRAIN
TRRAIN, the Trust for Retailers and Retail Associates of India, was established to address the challenges faced by retail employees. Retail associates play a crucial role in India’s economic framework, yet many face limited opportunities for skill development, financial inclusion, and social recognition. TRRAIN bridges this gap through:
- Empowering retail employees as well as women from marginalised sections of society with training and skill enhancement programs.
- Promoting financial literacy and inclusion among retail associates.
- Creating avenues for career progression within the retail sector.
- Recognizing and celebrating the contributions of retail employees through platforms like the Retail Employees’ Day.
How donation under 80G to TRRAIN helps donors
Donating to TRRAIN allows individuals and organizations to support an impactful cause while simultaneously enjoying financial benefits under Section 80G. Here’s how this synergy works:
- Social impact: Contributions to TRRAIN help empower a significant segment of the workforce and there are several programs focused on skill development and financial literacy enhance the quality of life for retail employees.
- Tax savings: Donations made to TRRAIN qualify for tax deductions and these savings encourage donors to contribute more substantially to social causes.
- Brand alignment for corporate donors: Businesses donating to TRRAIN align themselves with a socially responsible cause and this enhances corporate reputation and builds goodwill among stakeholders.
How to donate to TRRAIN
Making a donation to TRRAIN is a straightforward process:
- Enter the TRRAIN website and navigate to the “Donate” section.
- You can choose to donate one time or monthly.
- Enter the donation amount and payment details.
- Obtain a digital receipt for your records.
Here is how the donation tax deduction and its ripple effect
When you make a donation, you might be thinking about the donation under 80G, however the money you choose to donate helps create a ripple effect:
- Supporting TRRAIN goes beyond individual benefits; it contributes to systemic changes in the retail industry and in the lives of the people associated with our organisation.
- Empowering retail employees directly influences their productivity and contribution to the retail sector, which happens to be a significant contributor to India’s GDP.
- Our initiatives are designed to promote inclusivity, particularly for women and differently-abled individuals, fostering a more equitable workforce.
- Through the celebration of retail employees via Retail Employees’ Day and other similar initiatives, we are helping elevate the status of retail workers, ensuring their contributions are acknowledged.
Section 80G serves as a vital instrument in promoting philanthropy in India, offering individuals and corporations the dual advantage of contributing to social causes while optimizing their tax liabilities. When you donate to TRRAIN, you are helping enhance the lives of retail employees, the majority of whom are either persons with disabilities or women from marginalised sections of society. Your contribution not only helps all these people, but also nation-building.
